Valson Industries Ltd (Listed in BSE only)
BSE CODE 530459
Annual Sales 102 crores
Market Cap 25.78 crores
Reserves 19 crores
Book Value 38
Current Price 32
OPM 6% approx
Dividend Payout - Rs 1 per share
Business Operations: The company is one of the leading manufacturers of Polyester Texturised Dyed Yarn and Processors of Cotton and other Fancy yarns with Customers having diverse uses. Quality Products and Services has been the top most priority and after continuous research and efforts, the company has ventured into the dyeing of various qualities of yarns. The Company today has wide range of Polyester Dyed Yarn with a strong market acceptance and niche position for exclusive shades and grades. After the continuous efforts and research this year the company has focus on producing and marketing it’s value added products i.e. dyed yarns compare to white yarn and it has also focus on denier wise costing / profitability which will result into the best product mix to sell season wise so that the company always gets the better profitability. The company has done the consolidation and shifted its all plant and machinery to Silli units from the small units situated at D & NH which result into the saving on manpower cost, power cost, administration cost and other miscellaneous cost
Opportunities: The biggest growth opportunity for the textile industry arises from the changed global scenario of quota free business environment. Valson Industries Limited has already grabbed the opportunity and is rapidly growing in the huge domestic and export market. India’s strong performance and growth in the textiles sector is aided by several key advantages that the country enjoys, in terms of easy availability of labour and material, large market demand, presence of supporting industries and supporting policy initiatives from the government.
Threats: Along with the opportunity that the quota free regime offers, there lies the threat of stiff global competition which indirectly would result in price pressure. Indian textile exporters are facing stiff competition and they lack policy and labour law reforms. But the Company through its quality production competes well with other players in this sector.
Salary and Age of Key Managerial personnel
Mr. Kunal Mutreja CEO 12 Lacs (son of Suresh Mutreja CEO)
Mr Suresh Mutreja MD 32 Lacs (father of Varun (CFO) Age - 60 years old (B.Com)
Mr Varun Mutreja CFO 12 Lacs (son of Mr. Suresh Mutreja) Age - 34 years old (MBA finance / Export/ Finance/ Marketing)
Dividend Company has been maintaining a healthy dividend payout of 28.22%
Other Info The company is making every effort to reduce cost and increase the overall efficiency, which will result increase in overall profitability of the Company. The company is expecting growth in the measurable terms turnover and profit due to expansion of production capacities and expecting to do good Export turnover in future (page number 9 of annual report)
There have been reduction in Depreciation and some growth in Net Profit before tax
What is your opinion about this company ? I already have stake in this and willing to increase.